Aggregation of HUF interests for estate duty excludes sons' wives on notional partition, making 3/5ths the correct value.

For aggregation under section 34(1)(c) of the Estate Duty Act, the interests of all lineal descendants in HUF property must be taken into account on the basis of the notional partition under section 39. The wives of sons do not get a share in that notional partition, so their interests cannot be included in the aggregate. On that basis, the Tribunal's figure of 39.51% was held incorrect and the correct aggregate was 3/5ths, or 60%, in favour of the Revenue.

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Issues: Whether, for the purpose of section 34(1)(c) of the Estate Duty Act, 1953, the value to be aggregated in respect of the lineal descendants' interest in the HUF property was 3/5ths or 39.51%.

Analysis: Section 34(1)(c) requires aggregation of the interests of all lineal descendants in the joint family property. Under the notional partition contemplated by section 39, the deceased and those members of the HUF who would be entitled to a share on a real partition during the deceased's lifetime are to be taken into account. The wives of the sons do not obtain a share in such notional partition, and therefore their interests cannot be included for computing the aggregated value under section 34(1)(c).

Conclusion: The Tribunal's computation of 39.51% was incorrect. The correct aggregate is 3/5ths, i.e. 60%, and the question is answered in the negative, against the assessee and in favour of the Revenue.

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